Indian Basmati rice Export to Iran has been unaffected by the Iran Nuclear deal agreement, although sugar, corn and soya meal export may have the effect as some trade analysts said that after the lifting up of sanctions, Iran may switch its buying of these commodities from South America at much cheaper rates.
Food, pharmaceuticals and medical equipment were never prohibited under sanctions imposed on Iran
Iran has chosen to utilize its rupee funds held with UCO Bank to purchase rice, sugar, corn and soya meal from India even when the import prices were more than the prices in international market since 2011.
According to Tejinder Narang, trade analyst the decline in the exportable items started after indications of the Iran nuclear agreement in November 2013.
Now since the deal is done now, there is no chance Iran will pay handsomely, so the Indian exporters may lose their revenues once the western nations uplift their sanctions.
According to former president of the All India Rice Exporters’ Association, Mr. Vijay Setia,” India exported 900,000 tones of basmati rice to Iran in 2014-15 compared with 1.4 million tones in 2013-14. “India continues to meet 90 per cent of Iran’s basmati needs and we should easily export 1 million tones rice this year”
With the withdrawal of sanction, Indian basmati rice business would definitely be surged as under sanctions they were limiting their rice purchases and going through other routes, but now most of them will be free to work directly with us,” Setia said.